Koito Accuses Pickens of Greenmail Pact : Says He Appears to Be in League With Another Potential Buyer

Japanese auto-parts maker Koito Manufacturing Co. has sent a letter to Texas oilman T. Boone Pickens saying that he appears to be in league with a man who has tried to greenmail Koito.

The letter, released today by lawyers working for Koito, is Koito’s strongest statement yet against Pickens since he bought a large stake in the company nearly six months ago, sources close to Koito said.

The letter reiterated Koito’s request that Pickens disclose his relationship with Kitaro Watanabe, a man it said has tried to greenmail Koito on two occasions. Pickens could not immediately be reached for comment.

Greenmail is a payment by a takeover target to buy back shares from an unwanted bidder or stockholder, usually at a premium above the market price.

Pickens, who bought his 26% holding in Koito from Watanabe’s Azabu Group, has said little about his connections with Watanabe.

“Your refusal to disclose the terms of your arrangements with Azabu appears to place you in direct concert with a shareholder who has sought to greenmail the company,” said the letter, signed by Koito President Takao Matsuura.

The letter said Watanabe had tried to greenmail Koito with “the very shares you now hold.”

Pickens has repeatedly denied that he wants to greenmail Koito. He has failed in his battle to get a seat on Koito’s board even though he is the largest shareholder.

Pickens is not required by Japanese law to disclose his arrangements with Watanabe, and Koito is not obliged to grant him a seat on the board unless a majority of shareholders approves.

“We believe we are entitled to know . . . whether there exists an option, repurchase or security agreement or any other arrangement or commitment between you and (Azabu),” the letter said.